Energy and environment

Akram Khalid
CEO
Pakistan Prosperity Initiative
(Not for Profit Company)
May 6, 2014
Presentation made at the ‘Energy & Environment’ seminar held in the University of Management & Technology

Sequence
 Introduction
 Energy, Development & Environment
 Sources of Energy
 Advantages & Disadvantages
 Civil Society Perspective
 Recommendations
 Conclusion

Introduction
 Energy, development and environment are closely related
 There is a trade-off among them: a bit more of one demands
reduction in other two or at least one of them
 It poses a challenge for policy makers and administrators to find a
perfect balance
 My presentation is about the perspective of Civil Society on the
above mentioned balance

 The term Civil Society refers to a wide array of non-governmental
and not-for-profit organizations that have presence in public life
 They express the interests and values of their members or others
based on considerations such as:
Ethical, Cultural, Political, Scientific, Religious or Philanthropic
 Civil Society Organizations (CSOs) therefore refer to a wide of
array of organizations, community groups, non-governmental
organizations (NGOs), labor unions, indigenous groups, charitable
organizations, faith-based organizations, professional
associations, and foundations
What is Civil Society

Energy, Development& Environment
- Ensures functioning of world economy
- Fuels industrial, agricultural, commercial, transportation, power
generation activities
- Provides for habitat and subsistence needs
- Provides sources of energy, air, water and other resources
needed to sustain life
- Enables the continued functioning of society and the economy
- Ensures perpetuity, Shapes and manages human society and the
economy in a manner that satisfies the material and other needs
of the world's population
- Enables the international community to evolve through mutual
cooperation and co-exist in peace

Sources of Energy
There are over a hundred sources of energy. The above are the most commonly used sources

38.1
23.2
22.9
8.1
1.7
2.9
2.7
0.3
0.1
0.1
Oil
Coal
Gas
Nuclear
Propane
Biomass Wind
Solar
United States Energy Mix

Advantages & Disadvantages
Type of Fuel Advantages Disadvantages
HYDRO •Power produced in large quantities
•Sustainable
•Run of river are less expensive
•Environmentally destructive
•Fermenting vegetation in dams releases
greenhouse gas methane
COAL •Huge world reserved
•Low cost
•Not sustainable
•Requires huge quantities of water
•Produces high carbon dioxide
•Produces large quantities of ash
NATURAL GAS •Low cost
•Produces less Carbon Dioxide
•Not sustainable
OIL •Low cost •Not sustainable
•Produces carbon dioxide
SOLAR •Sustainable
•Non-polluting
•Large areas are required
•Not cost-competitive on large industrial scale
NUCLEAR •Abundant fuel availability •Not proven on commercial scale

Civil Society Perspective
 Civil society looks at energy issue from three different perspectives
1.Energy availability
2.Energy affordability
3.Environmental sustainability
 Although different but all three are interrelated

Civil Society Perspective
People need energy
People need energy
People need energy
•For domestic use
•For infrastructure requirements
•For entrepreneurial needs
•That is affordable
•That is supplied un-interrupted
•That does not pollute environment
during production and transmission
•Use of which does not result in
environmental degradation

Energy- Availability
 Load Shedding and power cuts have become widespread
 It is adversely affecting all the sectors of the economy and has
serious social and political repercussions also
 The gap between supply and demand for energy is likely to widen
if corrective measures are not taken

Electricity Consumption Trend
35.7
15.4
6.4
36.1
5.4
0.8
27.5
11.6
7.5
46.5
6.2
0.6
0
5
10
15
20
25
30
35
40
45
50
Industry Agriculture Commercial Household Government Streets
1993-94
2011-12
Source: Economic Survey of Pakistan

Transmission & Distribution Losses
21.3
21.1
20.9
20.8
20.5
19.3
18
18.5
19
19.5
20
20.5
21
21.5
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Source: Economic Survey of Pakistan

Energy- Affordability
 Besides shortages, the price of energy is escalating at a rapid speed
adversely affecting the poor and the middle classes
 Over 65% of Pakistan’s installed capacity is dependent upon fossil fuels
bulk of which is imported. Fuel prices have risen consistently in the
past
 Unfavorable Rupee-Dollar parity has shrunk our electricity generation
and forced government to increase prices

 Environmental sustainability is now an essential condition of any
development project all over the world
 Unfortunately Pakistan’s record on this count is not enviable as the
table on the next slide would indicate
 There is thus an urgent need to ensure that all our future
development, including energy ,should be environment compliant
Energy –Environmental Sustainability

 Energy sector is the top contributor with emission as highest among the
direct and indirect Green House Gasses (GHGs)
 Stationary sectors are the highest emitter of CH4, of which 98.4% is
residential sector at household and community level primarily due to
combustion of biomass for domestic purposes
 Almost 85% of rural households use wood biomass for cooking
 Twenty five percent of Pakistan’s total energy consumption comes from
biomass, contributing to 47% of all Green House Gas emission of the
country.
Energy-Environmental Sustainability
Source: Economic Survey

Country
name
Total
rank
2013
Energy
security
rank
2013
Environnemental
impact
mitigation Rank
2013
Energy
performance
rank 2013
Societal
strength rank
2013
Economic
strength rank
2013
UK 5 11 19 2 17 55
Malaysia 37 34 92 49 44 13
S/Korea 64 103 85 85 26 9
Turkey 75 64 70 74 51 91
China 78 18 126 90 61 7
Pakistan 114 56 100 98 124 123
India 115 76 121 124 80 54
Bangladesh 123 113 78 122 114 65
Energy-Environmental Sustainability

How to Improve Energy Availability
 Develop legal framework for community based power generation solutions
 Improve production & transmission efficiency of current installations by reviewing
equipment & HR
 Improve recoveries and overcome theft by engaging professional networks with police
support
 Import electricity if needed; pollution impact on producing country
 Encourage use of energy efficient home & kitchen electrical appliances in addition to industrial
equipment

How to Improve Energy Availability
 Create awareness, promote & facilitate solar energy production
 Legal framework for installation of reversible meters for private
entities generating electricity
 Develop alternate energy sources through exploration of Shale Gas;
Pakistan has proven reserves in excess of 51 TCF (1.0 TCF = 1.027
Quadrillion BTUs)
 Go for coal using environment friendly technology
 Avoid unproven biofuel sources of energy such as Jetropha

 Change the energy-mix; develop renewable energy resources and increase
the share of nuclear and hydroelectric power
 Promote biogas & biomass energy modules particularly in rural areas
 Indigenous coal usage would be cheaper; Electricity produced from coal
should be linked environmental safeguards
 Increase in production and reduction in line losses & thefts will in turn
improve affordability
 Import of electricity from neighboring countries should improve affordability
in the short run
How to Improve Affordability

Improving Environmental Sustainability
 Ensure that negative impacts of power projects on the environment as well as on the
local communities are properly assessed and addressed
 Plan necessary expansion of nuclear power while ensuring the highest safety
standards
 Obtain technological know-how for installing the clean coal technologies and ensure
that coal-fired power stations perform with optimum environmental safeguards
 Promote, encourage and enforce environment friendly energy efficient building
designs through legislation
 Encourage businesses to develop solar & alternate energy equipment for energy self-
sufficiency, especially in public sector buildings;
 Corporate sector in power generation should fulfill their obligations for
environmental improvement under their Corporate Social Responsibility
 Create awareness about importance of environmental sustainability among masses

What Civil Society Should Do
 Create awareness among masses for energy conservation and
environmental sustainability
 Launch advocacy campaigns for good governance in energy sector
 Initiate private businesses in respect of energy conservation
 Create awareness to install solar panels on houses in urban areas
and biogas units in rural areas

 Policy makers must try to maintain balance to ensure energy sources are
sustainable and affordable without compromising on development and
environment
 Legislation in respect of power generation by any of the sources should
maintain transparency while the requirements of environmental safeguards
must be maintained.
 Polluter to pay ‘principle’ should be the cornerstone of all our public policies
 The Civil Society leading by example must create enough pressure on
legislators and administrators for the provision of affordable energy ensuring
environmental sustainability
Conclusion

Energy and environment

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